Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 2 - Grants and Agreements |
Subtitle A - Office of Management and Budget Guidance for Grants and Agreements |
Chapter II - Office of Management and Budget Guidance |
Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards |
Subpart E - Cost Principles |
General Provisions for Selected Items of Cost |
§ 200.425 - Audit services.
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§ 200.425 Audit services.
(a) A reasonably proportionate share of the costs of audits required by, and performed in accordance with, the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507), as implemented by requirements of this part, are allowable. However, the following audit costs are unallowable:
(1) Any costs when audits required by the Single Audit Act and Subpart subpart F - Audit Requirements of this part have not been conducted or have been conducted but not in accordance therewith; and
(2) Any costs of auditing a non-Federal entity that is exempted from having an audit conducted under the Single Audit Act and Subpart subpart F - Audit Requirements of this part because its expenditures under Federal awards are less than $750,000 during the non-Federal entity's fiscal year.
(b) The costs of a financial statement audit of a non-Federal entity that does not currently have a Federal award may be included in the indirect cost pool for a cost allocation plan or indirect cost proposal.
(c) Pass-through entities may charge Federal awards for the cost of agreed-upon-procedures engagements to monitor subrecipients (in accordance with Subpart D - Post Federal Award Requirements of this partsubpart D, §§ 200.330 Subrecipient and contractor determinations through 200.332 Fixed Amount Subawards331-333) who are exempted from the requirements of the Single Audit Act and Subpart subpart F - Audit Requirements of this part. This cost is allowable only if the agreed-upon-procedures engagements are:
(1) Conducted in accordance with GAGAS attestation standards;
(2) Paid for and arranged by the pass-through entity; and
(3) Limited in scope to one or more of the following types of compliance requirements: activities allowed or unallowed; allowable costs/cost principles; eligibility; and reporting.
[78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49564, Aug. 13, 2020]